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Geo Expansion Program

Drive scale of your strategic solutions into new markets with Microsoft.

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WHEN are you ready to expand internationally?

Expanding internationally is more expensive and complex than expanding domestically. Expanding too early, without sufficient funding, people, a product that has been proven with diverse customers and against international competitors can lead to missteps that can be costly and time-consuming.

 

In my experience, ISVs that are ready for international expansion have, at least, the following characteristics:

  1. They have a profitable domestic business
  2. They have at least 10% market share in their domestic market
  3. They have a track record of winning against international competitors
  4. They have at least three internationally recognized brand name references
  5. They are willing to invest in people and infrastructure for at least 12-months even without new market sales

What would you add/delete to/from this list?

Paul

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Re: WHEN are you ready to expand internationally?

Great insights Paul! It is important to be ready and to prepare well! It’s also important to pick the right markets and many times I find that ISVs invest too much in smaller markets that demands expensive localization.

Going international is often better done through local partners (unless your solution is easy to sell through the cloud). Recruiting motivated and skilled local partners creates a winning atmosphere!


Regards, Per
Level 1 Contributor

Re: WHEN are you ready to expand internationally?

Thanks Per.  Yes, agree. I find that partners are great to acheive rapid market reach and that's why, in my experience, some 80% of ISVs expand through partners. But this GTM model surrenders some control. If an ISV wants control and their revenue model allows it, going direct can be an option.